tv [untitled] June 30, 2011 7:30am-8:00am EDT
in. the children of each college or a child to get to know who to put you know so told be added to my photos or video killed their ability to turn under my toes. in serbia let's use available in most clubs and where we can see they are going to. be live from moscow our top stories greece is in a cycle of protests as thousands rally against the approval of a highly unpopular all sturdy package the measures will see more cops in order to secure e.u. money without which the country will go bankrupt within weeks. a massive strike of public sector workers wreaks havoc in the u.k. schools and transport networks from teachers to air traffic controllers around three quarters of a million civil servants are staging
a walkout against government plans to cut their pensions and freeze pay. the u.s. secretary of defense robert gates is leaving the pentagon after almost five years of the helm of the country's military but with the cia chief taking over critics question whether hell and the wars are currently finding on an ever expanding defense budget. next financial pundits max kaiser tells us how greek communists have missed the mark in blaming capitalism for the country's was. i it's me or this is the kaiser report things you never knew about michael bloomberg but first let's check in with stacey herbert stacey max you know we've been talking about suicide bankers around the world and they are out in full force this latest week but at the start of the week i want you to look at this image from
outside of the acropolis when it was taken over by the communist party union in athens the people's house the power never surrender organize counter attack is the counterattack in athens joining the global insurrection against banker occupation over there in cairo they're well ahead of the curve and they're rejecting all i.m.f. world bank loans and all these protests are going to can do is to become the global movement and by the way for you fricken so-called communist masses you're not fighting against capitalism you're fighting against monarchs and oligarchs capitalism got nothing to do with your problem you don't think exactly actually the quote is we will strengthen our struggle with people from all over the world against capitalist brutality in order for the brutal measures that bankrupt the people not to be applied so all our headlines are going to prove that they are wrong about that it is not capitalism it's rigged markets and that's not that's the opposite of capitalism first take
a look at this look and we're going to look this is in regards to the oil release shocks markets ok this is the us and i remember last week they released sixty million barrels of oil into the market move is warning shot to opec they say exactly what was sort of warning shot is this japan to release three day or oil stockpile in line with i.e. a call to what kind of message is japan sending to opec you know japan imports form . million barrels of oil per day almost entirely from saudi arabia and the u.a.e. oh before we had those suicide bombers in iraq we had the kamikaze way this is kamikaze thinking let's blow ourselves up let's blow up our only natural resource that we're one hundred percent entirely dependent on just to show opec a message oh. that's like a scene from a fight club exactly but it's even worse it's like one of those suicide bombers that accidently blows themselves up like
a hundred miles from the intended destination. of their cell phone going to how do you suppose they get is what. so nobody know it is their statement course they only find little remnants of japan all over the place in this case so i mean i want to turn back to health i'm from march fourteenth this is a few days after the fukushima disaster well suttles higher japan maybe boost fuel imports because of course eleven percent of japan's energy needs come from nuclear energy fukushima is knocked off the line and they've had to turn to more oil imports so there are more reliance on oil imports now than ever before so the message that they're sending to opec is that hi will be back in a few days paying more for it then we sold it to you at first so the context here is you know the fukushima disaster which took energy production offline they need more oil so to help the people that are now in blackouts who can find the on switch and their little hobbles in tokyo their country is going to antagonize the only
source of energy they have and there's some concerns. so here we've proven that they're selling oil this is a kind of like a gordon brown move remember he announced to the market that he was going to sell half of britain's gold supply of course it guaranteed the lowest price possible this is exactly what japan and the u.s. and france and germany are doing their announcement to the market we're dumping all of this oil give us the lowest price possible especially since we're going to. buy it back at a later date now the other thing of course we knew that oil would fall seven percent now check out this headline max see f.t.c. investigating a boil release leak oh yes max surprise surprise u.s. commodity regulators are examining whether traders received early word of a decision to coordinate a release of global oil stockpiles ahead of thursday's announcement by the i.a.e.a. oh good i didn't talk about my blue reveal now of course we know that they did get
advance knowledge we've been talking about on this show the fact that those in washington in congress actually can trade on inside information and it's legal to do so how they got that booked into the legal framework i got to do a little bit more looking into it but inside information is completely legal this is why bloomberg revealed because the bloomberg service which is a terminal you pay a lot of money to get prices basically and you get to look at markets now there are different subscription rates or bloomberg you know if you pay more you get a look deeper into who's bidding and who's offering in the marketplace and if you pay even more you get spoon fed to you inside information from michael bloomberg was there the mayor of new york who's of course overseeing the new york fed who of course is involved goldman j.p. morgan and the federal reserve bank of washington dispensing inside information illegally bloomberg is involved in legal conspiracy that's not conspiracy theory that's conspiracy fact it's all siding to bloomberg bloomberg being of course now
running for president supposedly lining things up where is he getting that money oh i get it it's inside information which he will of course try to legalize to cover his butt at the end of the article there's a quote it's going to be awfully tough to identify the source of the leak in this case because of course it's always awfully difficult to prove insider trading twenty eight nations were involved so a whole lot of people knew this ahead of time well the see if you see another regulator's they don't have the money to pay for. the subscription on bloomberg to show you who's trading on inside information they're bankrupt purposely on purpose so that they can possibly prosecute insider traders but also as liam graff goodman proved earlier this week is most things are no longer illegal anyway they've been unwound all the regulations against insider trading and trading on this sort of information is no longer illegal to say gary gensler former goldman sachs guy he gives his blessing to outright market manipulation of propaganda to the people of athens you're not protesting against capitalism you're protesting against
transgressions against capitalism by market manipulators and insider traders like gary gensler to see if you see michael bloomberg of bloomberg or of jamie guy minutes you can morgan these are the new honda the new hunter remember the hunter back in the seventy's a polish stood up in a country where the troika is the new. big other thing about this oil going on to the markets is that obama now gets to claim that he's tough on speculators all those speculators driving up the cost of oil and gasoline well of course only speculators only these top guys these hedge funds these oil traders make money on the down side right contango why the release of oil from the s.p.r. is a doomed idea by dumping sixty million barrels of oil on the market or saying they're going to announcing it ahead of time the price of oil has fallen. today in the market today not in the future now traders are able to buy this oil cheap from the u.s. government from the japanese government from the south korean government france and
germany they're able to buy it today at this ninety dollars price of their w t i a hundred ten dollars price for brant they able to buy that and sell it back to them for six months and i went down the road through the site is a tough on speculators being tough on speculators i assume makes the assumption that somebody is losing money because they're being tossed on their criminal behavior then they have a risk there's some kind of penalty but in fact that's incorrect by simply telegraphing which direction oil is going from the obama white house to the oil market they were out able to make huge gargantuan profits once again which will trickle back into the oil futures markets within six months time as oil burst passed under blows past one fifty us way to two hundred because you're just giving ammunition to the very people who say you're being tough again it's like for example you see a perfect example of this the u.s.
selling guns to the mexican drug cartels and then saying we don't know why we're losing the war on drugs all the stroke over for mexico well stop selling them so many goods there speaking of market intervention there was at the end of april when we had all those margin hikes on silver oh yeah who can forget well bill gross manager of the lot world's largest bond fund tweeted last week that margin increases on silver are basically an attempt to rig the market he said quote i eat a action yesterday continues policy makers efforts to cap bad inflation in parentheses silver margins excedrin nonetheless higher inflation ahead well bill gross is going off the reservation he's calling out the manipulators and the corrupt regulators they're in the pocket of the markets he feels i believe that his fund big. one of the world one of the biggest funds in the world he's got the leverage and he loves to write about the inner workings of these markets now over
there in business insider dot com joe wiesenthal at the same time he wrote a piece lauding ben bernanke the for engineering a price drop in the price of oil of course but wiesenthal's of paper bug any attacked bill gross as being given to conspiracy theories so there's a bit of an interesting dynamic being set up here between bill gross and the people who support the status quo in the paper pushing paper book neo liberal psychopaths that drive down the road toward economic clintonism that we're seeing in athens the return of the they call themselves al the so joe wiesenthal is calling him i can speak a silver conspiracy theorist but here's a guy bill gross who accidentally admitted i was on c n b c but he received inside information from the fed he received information on interest rates but right he let slip and i think that's part of his campaign to try to bring some balance to these markets i think is
a vigilante for market justice so he let slip that he actually is in the in the loop with inside information from the new york fed in the federal reserve now he's talking about gary gensler c.f.c. see openly and corrupted lee rigging markets in this regard in capitals nightmare that's disenfranchising people all over europe all over america but they did a great job because we had it on our you to look down below here people were screaming shrieking for that the third one third of our prices are falling they're so powerful we are helpless people remember but at the top of the show we said people have the power it is the people who have the power organizer counterattack and you will win silver coin sales booming perth meant so there were a lot of people shrieking terrified of ben bernanke you they look at him and they see the wizard of oz before he's revealed they see a powerful all powerful. no one man and they're afraid of him others were out buying silver while prices were being smashed probably bill gross but the perth
mint for example says that they sold ten point seven million ounces of silver since july first of last year the sixty six percent increase over the previous year and the us mint sold three point six five million coins alone in may that's a thirty percent increase well you measure the wizard of oz of course the wizard of oz is an allegory about returning to the gold standard and dorothy's ruby slippers were originally silver slippers and if you play the wizard of oz or a video or d.v.d. and try to sound all the way down simultaneously play the entire full length version of dark side of the moon by pink floyd as the musical background will get friction ripped but again all of these market manipulations they they help the people who are short because remember a pension funds your pensions your future can only really go long in the market so the government rigs the market on silver and oil they force it down because their guys are making money on the drops and prices and most people don't understand that
they think prices have to go up on various commodities and stocks for people to make money for speculators to make money here is more profitable than safe that's the underlying functionality of the current rate market capitalism and michael bloomberg we've got your across as we know what you're doing thanks for being on the kaiser report thank you max don't go away much more coming away so stay right there. twenty years ago or just country. to switch places. with. jennifer. where did it take.
i max times are welcome back to the kaiser reports i'm now to go to go talk with jeff berwick editor of dollar vigilante dot com welcome to the show jeff thank you very much max all right just growing as your website name suggests you are a dollar vigilant saying now the u.s. and the i.e.e.e. egg have just fired a sixty million barrel watt at u. of oil are you scared is selling oil from easter t. to petroleum reserve going to defeat inflation jeff it's pretty obvious that obama understands the oil market about as much as he understands the u.s. debt markets this. absolutely no affect them it's quite.
puzzling why they would even do it there's obviously just one or two reasons why they would do one is for political gain which really makes no sense because why would they even bother like as i just mentioned it's such a small amount that it really won't have very much effect at all the only other reason i could think of that he would even do this is there's some sort of an emergency like that's the reason you're supposed to actually release these oil reserves and who knows maybe they're planning something but with iran there's any number of possible things that could happen at this point this is a desperate government and it's a dying empire that's a step throes and it's liable to do anything at this point. describe to us what is the dollar vigilante i get into it and what do you expect going forward just speak more top level basically back in the one nine hundred eighty s. as you know there used to be bond vigilantes people like soros and those sort of
people and and back then the reason there was bond vigilantes was they basically thought there was no way to control these governments who were inflating or going too far into debt and the only way that they could really control them was to sell their bonds so back then they were called bond vigilant as well now we've got a completely different world where we live in a completely currency world and people like ben bernanke and the federal reserve are buying up all the bonds and that's what they've been doing in q.e. so there's really no way to fight the government now by selling bonds there's no point to it because they can print up as much money and buy all the bonds they want so the only way for regular people to protect themselves and to show displeasure with what these governments are doing is to sell dollars and buy real assets such as gold silver even energy oil things like that so that was the beginning of the dollar which launched you and how we started out hi jeff so you mentioned the
eighty's and this starting in the one nine hundred eighty s. and it's time to mimicking what we used to call. bond vigilantes who would sell bonds as a way to offer some checks and balances against government overspending but then thanks to programs like quantitative easing where the government's coming in and buying government bonds they've effectively co-opted the bond vigilantes i remember back in one nine hundred eighty seven after the crash i was street the federal reserve the treasury department and ronald reagan and rubin and greenspan came together they form the working group on finance and they started to buy s. and p. futures contracts the next week and this was the first time or i should say the first time but really the beginning of the. government the us government having its own huge hedge fund type accounts used to. move markets in directions that they claim are beneficial of course make us completely against the idea of free market capitalism it's the beginning of institutionalized market capitalism it is part of
the history of the past twenty twenty five years that you are commenting upon it is part of a part of the philosophy here part of the idea absolutely there really is no way to protect yourselves noticed from what these governments are doing and as you said they're completely out of control now this is not a free market system out all and what you were just referring to is the plunge protection team and and for some reason well i understand the reason the reason that the us government's thinks they have to make sure things like the stock market don't go down very much is because they're basically controlled by wall street and that's not what wall street wants so the markets will only go down when they want to go down so this is a complete rigged artificial financial system and the only way to even get outside the system at all is to sell your financial federal reserve notes to u.s. dollars sell bonds and sell anything from the financial system and get out of the system that's the only way you can protect yourself at this point because the
system actually is going to collapse and no one knows what's going to happen at that point so it's a very dangerous time but it's also exciting time as you know as we know and as you know on your on your report every day that i'm sure you're never struggling to find information or any any news that's of interest every day it's it's overwhelming what's going on right now as the system is in a state of collapse this is a complete. end of the world as we know it in the financial system and that's probably a good thing because this financial system is not a free market system it's basically fascist or controlled. and in some ways communist system when you have be. central planning of the interest rates on the dollar and the fia currency system this is just the system and we're just seeing all the symptoms of this all around the world right now as the system starts to collapse right rig market capitalism is a growth industry and certainly we're capitalizing on that here on the kaiser
report but you mentioned the comparison to command and control economics most recently associated perhaps with the soviet era of fixing the price of products let's say cars and not allowing the market to determine the price of something like a car manufactured goods and this results and collapse now the comparison here is that in the new u.s. you have a poll of euro called the federal open market committee run by ben bernanke and they don't fix the price of products per se but they fix the price of money they fix the price of interest rates and the result is this same you've got a commanding control economy that is causing generating enormous price dislocations as you see the price of commodities skyrocket wages collapse and the basic quality of life in the u.s. is deteriorating rapidly as rapidly as we've seen anywhere in the last fifty years
correct oh totally. it's just amazing that they do try to control the prices of everything but at the same time they're not very smart or they're i can like are not very smart because they use all these keynesian economic theories which makes no sense and they don't seem to understand that once you inflate a bubble in one area which is what they did with the housing bubble in the us after the tech bubble they never let any of these bubbles truly collapse anymore which is a sort of keynesian sort of approach on things that they can somehow smooth out these probable spy in inflating the money supply so they don't seem to realize that whenever they reinflate the money supply in expectation that they'll read and. but bubble in for example housing they don't seem to realize that the money never goes to the areas where the the bubble just collapsed so they're trying to they've been trying since two thousand and eight to reinflate the housing market and the money has not gone there and now the money's gone towards commodities word scolds words.
things like shoot and we're seeing it all over the world right now as people start to riot and protest against the rising price of food and it's all led by ben bernanke and central banks all around the world it deftly appears like they're doing everything possible to make the system collapse the easiest market to manipulate is the stock market and that's what ben bernanke looks that and with these new i.p.o.'s coming down the pike from linked in dot com or facebook dot com a group on dot com this is creating a lot of new currency to pay off bribes and to you know can conduct this institutionalization of the american kleptocracy but you mentioned bill gross bond vigilante extraordinaire and what's left of them anyway now he recently tweeted that this move that we were just talking about releasing oil was similar to the c.m.e. increasing margin rates on silver now this opens up a bit of a can of worms here because the sienese increase in marginal rates split the
financial journalistic community down the middle between those who believe that the regulators are manipulating prices and manipulating things like margin rates and those who believe that they're not bill gross coming down the side now of the manipulation camp now the intention was to drive down prices as bill gross says now that did these interventions in the oil and silver market do they do anything to dissuade you from investing in either of these assets let's say oil or a silver and what's your thoughts on what bill gross is saying definitely doesn't dissuade me if anything it encourages me i'm looking at buying oil right now because we've been given. a little bit of a dip your buyer there are a little sale there are emergency and stock. definitely i completely agree that the market is manipulated there's and there's absolutely no question of that it's just a matter of what level is a manipulated the for us government for decades has been manipulating markets just
look what they did to the hunt brothers basically one hundred brothers tried to buy up a lot of silver and the u.s. government didn't like it and they did everything they could to manipulate the market to basically end up bankrupting the hunt brothers and basically end up destroying their lives basically and of course what the what did they call those brothers in the one nine hundred eighty s. they called them manipulators well there was there was only one real manipulation during that others were just buying silver because they didn't they were seeing the same things we see today and in the inflationary nine hundred seventy s. and the u.s. government manipulated the price over lower and then accused the hunt brothers of manipulation so it's the same with staying they've been doing this for decades and it's actually just getting worse and worse now and we're just starting to wake up to it right and a sale is still around in silver coins has never been higher as the public doesn't seem to be fooled by this and you've got about thirty seconds i just want your final thoughts if you can weigh in a little bit on the bitcoin phenomenon that's sweeping the globe caused
a lot of controversy a lot of heat now. from some folks but then again we and others believe it's a fantastic thing what do you think my first impression i heard about about three months ago for the first time and i was thrilled when i heard about it and i think that's a little bit the computer nerd side of me i see this is a little bit of a struggle between computer nerds and the austrian economics people and i'm i'm very involved on the austrian economics side as well and i have a lot of friends and i'm involved in a group and actually i was very surprised as you mention a lot of sort of more libertarian austrian economics these sort of people have kind of lashed out against declawing and i'm quite a little. but confused about it as well i think they're coming from it from the from me says he used to say that it's in the theory of money that money can't be something that can just be made up and conjured it has to tell you in and of itself so i think they're sticking to that and they've been fighting a few currencies for so long that i think they're just used to fighting other forms
of currency but i really like the concept of corner like how it's on regulated and and intractable and there's no way to shut it down and i think the more that we have these sort of options and these are options because right now we don't have any options and the few a money system we have just have to use the few money but this is what free market money looks like and i'm excited by it yeah i think what and carl. what they don't really know how to chance to comment on yet is the key concept of cryptology and how that weighs into currency creation and exchange but anyway jeff that's all the time we have for this we get thanks for being on the kaiser report oh it's been my pleasure thank you. and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests jeff and if you want to send me an e-mail please do so at kaiser report that r t t v are you if you have a suggestion for a guest or you'd like to be